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GOING TO SELL all my stocks this week and invest in only in these four stocks. THATS it. I will then write calls and puts 3 times a week (MON- WED-FRI) $IWM , $QQQ , $SPY, $XLE (or $XBI) The reason is pretty clear.
- This market is living from quarter to quarter
- Price of equities are being dictated by Options
- Institutions are still not participating in mass
- Inflation is still sticky
- Valuations on growth stocks are still ridiculous
I believe it’s become to difficult to pick specific stocks and when you pick one 3 months later you have to hold your breath and make sure the earnings are good and the forecast has to be good. The BUFFETT method only worked last 4 quarters because oil stocks went up about 60-70%. Without Those his portfolio would have been down about 18%. So now why these 4 stocks??
- These 4 stocks will cover pretty much 90% of the stock market
- They have options which means if they trade sideways I’m still making 20-35% just on options alone. As much as I dislike IWM because let’s face it 50% of the stock in IWM are bleeding. BUT I always want exposure to small cap that I can’t get with other ETFS.
- Even if we get a correction (which we will, I don’t want to wake up in the morning and see some of my stocks down 20-40%. SEE META or SHOP) my portfolio will only be down as much as the broader market.
- SPY — does the balancing for me. https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-us-indices.pdf
- I included $XLE because the other 4 really don’t have a big exposure to OIL And gas. XLE might be substituted for XBI (if I see oil has peaked ).
I will see where the indices are this week, I will NOT buy all 4 at the same time (unless if the stock market goes down 5-6% ).
Thanks for reading.
Solid broad funds, a safer bet than individual name picking. Can’t knock it. I’ve been buying into a broad index fund instead of picking names the last several months while I build more conviction to take more calculated shots
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